New Evidence on Whether Gold Mining Stocks Are More Like Gold or Like Stocks

Mark A. Johnson and Douglas J. Lamdin examine the returns of gold mining stocks, gold, and a diversified portfolio of U.S. stocks over a period from 2006 to 2015. They find that the return on gold mining stocks is explained more by the return on gold than by the return on stock, and suggest that gold mining stocks may be viewed as a substitute for gold in a diversified portfolio.